Thread: Business Loan & PPI

I have been mis sold PPI on my business loan account with Barclays.

I have already got refunded PPI with Barclays on my personal account due to being self employed and that the policy didn't cover me they agreed I'd been mis sold and refunded me but I'm still presuing interest which they forget to refund the fos are dealing with this.

Back to my Business account.

My business loan account is slightly different in the way it was sold to me and I'm not sure if they have covered themselves by making loads of statements on the pre contract information form/statement of demands and needs form. However this doesn't make the policy any better for me as a self employed person. It just means they have asked me certain questions for suitability.

It is also the same insurance company as with my personal loan account so would imagine the policy is exactly the same.

So before I write to Barclays I want to make sure I have covered all options and avenues.

The statements Barclays have made reads:

You are applying for a barclayloan for business with a lending amount of xxxx.

Provision of the following details, together with those provided in obtaining approval for the Barclayloan for business, will enable a decision to be made as to whether or not the provision of payment protection insurance is recommended. The insurer will provide further details regarding the insurance if an application is submitted and accepted.

payment protection insurance is an optional insurance and not required as a condition of taking out a barclayloan for business.

In confirming the following statments you have a duty to disclose any and all facts that are material to the decision about the appropriateness of this payment protection insurance. An example of a material fact is, but is not limited to, existing relevant insurance policies. The consequences of not disclosing all relevant material facts is that in the event of you claiming against your policy, the claim may not be paid.

If you have consulted a doctor, received treatment or are receiving treatment for any medical condition suffered during the last two years, or in the case of back or stress-related problems five years, your attention is drawn to the section of the policy concerning exclusions and limitations assocaited with previously known medical conditions.

Statment of demands and needs

The following statement apply to Ms xxxxxxx

You have told us that:

In the event that you are unable to work due to accident or sickness you would not have sufficient income replacement to meet the new borrowing.

In the event that you are unable to work due to accident or sickness you do not have any other financial arrangements that could be used to meet the new borrowing.

You do not currently have any existing accident, sickness and critical illness insurance and/or Life Assurance that would provide appropriate cover in these circumstances.

Payment protection insurance meets the demands and needs of customers who wish to ensure that their barclayloan for business is protected.

Based on the statements you have made to us, in the event of loss of income you would not be able to repay your new borrowing and maintain your other commitments and/or lifestyle. It is therefore our recommendation that you take out payment protecton insurance to meet this need.

In making this recommendation we have not taken into account the details of any existing insurance cover you may already have in place and therefore in this respect alone, the cover we recomend may not be suitable.

You have agreed with out recommendations and you do wish to apply for payment protection.

Barclays seem to have covered themselves with pretty much everything.

Lizzy

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Thanks HHNF Yes I thought I was because of the self employed aspect of the policy.

This policy doesn't mention much about self employment cover the only reference it makes is under the definitions section of the policy self-employed means "actively working alone or with a partner in a trade or profession in the uk for at least 16 hours a week. You must pay class 2 national insurance contribution, with income tax assessed under schedule D class 1 or 2.

On the front of the policy its says:
Schedule for a Barclays businessloan insurance
Disability, Critical illness and life cover.

So the way I understand this policy is I'm covered as a self employed person but only for Disability critical illness and life cover but not if I loss my job or close my business due to loss of trade and become unemployed.

It doesn't mention anything about unemployment cover.

So I thought I was protected for unemployment cover but I'm not.

Its all so confusing!!!!

Just had confirmation that the bank will pay the interest on my mis sold PPI personal loan policy thanks to the fos.

Regarding my business loan, I thought I had PPI turns out its crital illness cover can I claim a refund on a crital illness cover or is this different to PPI?

Hi Lizzy
I asked for a copies of PPI which arrived today but no sign of Term & Condition, so wondering if you dont mind to look through your copy about being self employed or email it to me? please
Thanks
Bobbie

Hi Bobbie,

Just picked your message up! Yes I can do that for you haven't got it on me as I am at work will do it first thing in the morning!

Lizzy

Brillant! thank you so so much

Bobbie